Cormark, Inc. – This Chicago-based retail display and fixturing company had seen a significant drop off in sales and was in technical default with its lender. With only 3 weeks remaining under its forbearance agreement, SC&H Capital was retained.
The secured creditor agreed to extend the forbearance agreement and continue funding operations for 30 days to allow SC&H to complete a marketing process. SC&H quickly generated significant interest in the company and was proceeding towards a sale. However, during this time, the Chinese operations of the company shut down, creating a major hurdle to customer supply. Interest waned and the company was nearing liquidation when SC&H successfully negotiated a stalking horse offer from among 3 potential bidders. The value of the bid far exceeded any liquidation estimate and we closed the transaction without a single day of interruption.